In our newest study, we assess the drivers behind the growing trend in Power Purchase Agreements (PPAs), what the differences between PPAs and more traditional hedging options are, and whether the growing trend in PPAs has affected the use of these more traditional hedging options.

The findings suggest that the recent development in use of PPAs is driven mainly by new market participants. Further, PPAs are a complementing hedging option to the financial future markets since it provides a hedging option which can be tailored to suit the specific project. As such, the financial future market is primarily used for shorter term hedges up to five years, whereas the PPA market is used for longer term hedges.

Learn more about the study
For further information, please contact Bjarke Modvig Lumby